Sunday, February 8, 2015

West Coast ports facing shutdown in labor dispute

West Coast ports facing shutdown in labor dispute


This picture shows the congestion that the West Coast ports are facing.

Summary: In the article, “West Coast ports facing shutdown in labor dispute,” by Andrew Khouri of the Los Angeles Times, via Duluth News Tribune, explains that there might be a possible shut down of ports in the Los Angleles and Long Beach areas of California. With the main ports in Los Angeles and Long Beach, 27 others are nearing the action of shutting down the ports, completely. This shut down could and will interupt the nation’s trade with Asia’s ports, and will damage the regional economy. The Pacific Maritime Association which is an employer group the represents the shipping lines has been dicussing contract with the West Coast dockerworkers for the past nine months that they would cease the unloading of ships because they do not want to pay overtime.  These dockworkers have accordingly been slowing down the opertations that take place at the ports. The ports are at a point, this Friday, where they have become almost inoperable. The article points out that the blue collar workers of the West Coast are most vulnerable to the shut down. The shut down will affect major companies who rely on the ports.

Analysis: I agree with the fact that this will clearly have an affect on companies that rely on the ports of the West Coast, who receive most of their shipments from Asia. I have a personal connection to this as well. My friend who graduated last year got my friend and I involved in his friend’s eco-friendly business, Sprout Products. My friend and I were to go the warehouse and help package and manage the shipments they received. We were supposed to start about two weeks ago, but the shipments were from L.A., and therefore were not arriving at the warehouse in Illinois. The issue is clearly affecting bussinesses that ship throughout the U.S. and to other parts of the globe. If this continues I believe that the ports will completely shut down could potentially be as severe and posssibly worse than the congestion of the ports of the West Coast in 2002, which took 100 days to rebuild itself.

Discussion Questions:
Due to the fact that the West Coast is an important port for Asia, how do you think they will handle this situation with their shipment of products?

How do you believe other ports in the U.S. may be affected?






1 comment:

  1. It's interesting that you have such a personal connection to the issue. I had never heard of this issue before, but clearly it is affecting the area close to me. Hopefully a compromise can be reached between the management and workers so that production can go back to normal. I know that the U.S. trades a lot with Asia, so it's crucial to our economy that a deal can be reached.

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